Inditex optimistic about push into China
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Intidex, the parent company of fast fashion chain Zara, has revealed a sales increase of 16% year-on-year to 14.74bn (£10.6bn) over the first nine months of its financial year. Despite a dip in the economy, the Spanish group has said that it remains optimistic about its China prospects.
The group’s profits, which include a 20% increase to £2.02bn, come not long after founder Armanocio Ortega surpassed Bill Gates as the world’s wealthiest man.
Though luxury fashion retailers such as Burberry and Hugo Boss have experienced difficulties in the Chinese market, Inditex is positive about its expansion overseas.
“We have no doubt that the fashion appetite in China is large, our brands are better and better known. We are still feeling very optimistic,” said Chief Executive Pablo Isla.
During its first three fiscal quarters, the group added 136 new stores to its estate making a total of 230, the same amount as the same time last year.
Zara had the most openings with 60 new stores, as well as 44 Zara home sites and 26 new branches for lingerie brand Oysho.
In addition, Zara’s e-commerce platform is being extended to all of the European Union, Taiwan and Hong Kong, while a website for Zara Home has debuted in Australia.
Questions & Answers
Q.What is Inditex's financial performance over the first nine months of its financial year?
What is Inditex's financial performance over the first nine months of its financial year?
Inditex saw a 16% year-on-year sales increase, reaching £10.6bn. Profits rose by 20% to £2.02bn during the same period, despite an economic dip. The company remains optimistic about future prospects.
Q.How many new stores did Inditex open in the first three fiscal quarters?
How many new stores did Inditex open in the first three fiscal quarters?
Inditex added 136 new stores during its first three fiscal quarters. This brings the total number of stores to 230, which is the same as the total at the same point last year. Zara accounted for 60 of these new openings.
Q.What is Inditex's strategy for its e-commerce platforms?
What is Inditex's strategy for its e-commerce platforms?
Zara's e-commerce platform is being extended to cover all of the European Union, Taiwan, and Hong Kong. Also, a new e-commerce website for Zara Home has been launched specifically for the Australian market.
Q.Why is Inditex optimistic about its prospects in China?
Why is Inditex optimistic about its prospects in China?
Inditex is optimistic about China despite other luxury retailers facing difficulties there. Chief Executive Pablo Isla stated that the fashion appetite in China is large and their brands are becoming better known. They feel very positive about their expansion.